Member Info for BouncyDeadCat

The last groundhog day was a placing at 7p and a journey to 25p.
If this is groundhog day 2 then are we to expect the next leg up to be 67p
:))

Chariot are telling you what they're going to build.
If they were going to hand this over to a major, then they wouldn't be spending all of this money designing the development. The major would be 'We'll be taking it from here thanks'.

I think they have a funding agreement in principle (maybe even underwritten by the Moroccan government itself) and that's why we have a CEO who is greedily gobbling up shares at every opportunity he gets ~ because he knows there's massive cashflow on its way. The reason I think this is because they already have two MOUs from African-focused financial institutions. MOUs they got from actually sitting down and having a conversation about the project. Presumably ~ if the project can generate x and provide us a yield of y, then we will fund it.
SocGen has already been brought in to design the financial instrument (probably a bond).

Danno,
As per the RNS;

"The Board is looking to advance the Front End Engineering Design ('FEED') project to reach the Final Investment Decision ('FID') as quickly as possible, whilst progressing the development of the wider portfolio.

Development plans

Given the high quality and consistent nature of the gas composition, production from all reservoirs can potentially be processed through a single facility which would enable a simple development that utilises conventional technology. The Anchois wells are also favourably located near to onshore existing gas infrastructure which facilitates the subsea to shore development. The development plan from a pre-FEED study consists of two initial subsea wells tied into a subsea manifold with a 40km offshore flowline connected to an onshore gas processing facility. From here, a short 40km pipeline will connect to the trunk pipeline to Europe, which provides access not only to the growing Moroccan energy market but also to the European gas market. Chariot is collaborating with Subsea Integration Alliance, a developer of offshore gas projects, to progress development plans, Front-end design, engineering, procurement, construction, installation and operation of the Anchois Gas Development."

Majors move slow.
Morocco and Europe need this gas asap.
Chariot can move way more nimbly than any major.
The Moroccan government has already proved that it is helping Chariot fast track this asset as quickly as possible.

allow?
Strange choice of words.

You sure you're a LTH? A 6% rise in the SP after a placing lower than the opening price certainly ain't no groundhog day kingbilly ;)

Different Chariot.
Huge discovery.
Desperate market, on our doorstep, wanting what we have asap.

CEObaib, I can understand why you may see this as dilution at an inopportune moment. I kinda thought the same thing the moment the RNS dropped, but then I read through the entire RNS (including the additional supporting documents). Which is why I'm more convinced than before that they are going to go this alone.

This cash will fund them up to getting the debt finance to build the infrastructure. When seen through this light, it doesn't matter so much if they raise now at a 13% dilution or later at a 8-9% dilution because by the time they get hold of the CPR how much time has passed and how much work have they sacrificed doing because they didn't have the cash to do the necessary work?

You've got to be very careful pressing the pause button in order to wait for a more opportune time to raise finance (as a business owner myself, I can attest to this). Morocco and Europe needs this gas. Chariot need to get on with the development plan.

And by the time they get the CPR, who knows what the market conditions will be to raise capital. FED has already started squeezing liquidity out of the stock market.

Data from the two wells discovered 150m of stacked reservoirs with very good seismic read-through for the other Anchois satellites. This data is probably going to take quite a long time to work through in order to get an accurate picture of what they have and what the CP is happy to sign off on as proven and I therefore don't think the CPR is as close to being released as a lot of people think it is. Probably sometime during the summer is my best guess.

Tells you all you need to know.

I am definitely subscribing to my allocation of the open offer.

Before 'running the book' the broker always sounds out 'what price' the II's would be interested in buying at.
Explains the last few days of weird price action I suppose.

Sniper, yes, they'll try and shake the tree for sure.
II's wanted stock at a bargain price and got it.
The bargain is 18p.
I can live with that.

Indeed Jimmy.
& CEO Adonis is buying up more stock at each opportunity.
They have so much data under lock & key. They know what they have.

They are funding the Front End Engineering plan themselves.
This tells me they are more likely to develop Anchois on their own (through debt financing).
They could have partnered and got this funded instead of a placing.
$20 million already raised via II's. Adonis going in for another half-million chunk.
18p puts a floor under the SP.

You either place and do the work yourselves, or you farm out the asset and end up with the necessary capital but much less of the pie.

What do you choose?

Make no mistake, this is one huge pie (1Tcf +) and it looks like Adonis wants to keep hold of the majority of it.

Asking what is the real reason for the fall shows your naivety. Do you want us to come up with some conspiracy theories for you for why we've dropped a penny or two?
Maybe, just maybe, Char is slightly down because the broader market is selling off.

You're obviously new to markets.
For the last 10 years the FED has controlled the market cycle.
Once the market has puked enough, QE will start again and direction will change.

I'm more than happy to buy today at 19p, even though I bought some at 20.5p & 21.5p.
Didn't think we would get the chance to buy at this price again, but the wider macro markets are selling off and has taken most stocks down with it - the good ones, as well as the bad.

Ask yourself:
What will Chariot be worth in 2 years?
Can you wait 2 years?

If so, Buy.

This year's ISA now has £9k of CHAR in it. £11k more to go. Will DCA the whole way through :)

Even if the Ukraine war were to end tomorrow. Europe will continue to move away from Russian gas.

Looking more likely now that it has convincingly dropped below 5400p.

Name your source. Their full name and where they work please.
You won't though will you.
Because it's BS.

Yes normally.

Unless there's a recession.

Which would mean...
*Lower consumer demand.
*Less investment going into construction and production of goods etc.

The FED raising rates could push the US economy into recesssion. I suspect Europe is already in one.

Like I said - it would hit 5400p before the end of the week ;)

The West will stop buying Russian Fertilizer.
New supplies will be needed.
https://www.lemonde.fr/en/economy/article/2022/04/14/the-fertilizer-market-s-dependence-on-russia-places-grain-production-at-risk_5980589_19.html